Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY2019 Earnings Presentation
34 slides from Jindal Steel's earnings presentation, Feb 2, 2019
Slide 1: Exchange intimation letter under Regulation 30(6)
February 2, 2019 JINDAL STEEL & POWER BSE Limited Corporate Relationship Department, 1s Floor, New Trading Ring, Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai - 400 001 corp.relations@bseindia.com Scrip Code : 532286 National Stock Exchange of India Limited Exchange Plaza, 5t* Floor, Plot
Slide 2: Q3 FY'19 Industry Update & Key Performance Highlights
Q3 FY’19 Industry Update & Key Performance Highlights 2nd February, 2019
Slide 3: Forward looking statements disclaimer
This presentation may contain certain forward looking statements concerning JSPL’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks an
Slide 4: Industry Update, Brief Background, Operational Performance
Q3 FY’19 INDUSTRY BRIEF BACKGROUND OPERATIONAL UPDATE PERFORMANCE 3
Slide 5: Global Economic Environment
Global Economic Environment > Strong GDP Projection Strong Global Economy: CY18 CY19 CY20 >Global growth momentum strengthens and is on a broader footing. 7.3 7.7 6.6 6.2 5.5 5.3 > US growth momentum remains healthy driven by Fiscal stimulus and high consumer demand. 3.7 3.7 4 3.4 2.9 2.9 2.7 2.2 1.
Slide 6: India Becomes 2nd Largest steel producer in world
India Becomes 2nd Largest steel producer in world …. Global Production improved significantly 4.6% CY 17 CY 18 Y-o-Y Growth rate 1809 1730 4.9% 107 (0.3)% 102 105 104 6.6% 6.2% 87 871 928 82 #1 #2 India #3 Japan #4 USA World China > Global Steel Demand likely to be healthy > Global Steel Capacity Ut
Slide 7: Falling Finished Steel Prices vs Fairly Stable RM Prices led to Profit Erosion
Falling Finished Steel Prices vs Fairly Stable RM Prices led to Profit Erosion > PLV Price Trend - FOB Australia ($/MT) > IO Fines 62% ($/MT) CFR China 240 229 85 218 214 216 221 226 204 76 77 70 70 73 72 69 188 184 199 185 184 65 66 65 64 67 Oct-18 Aug-18 Apr-18 Jun-18 Dec-18 Jan-18 May-18 Sep-18 N
Slide 8: Healthy Domestic Economy
Healthy Domestic Economy 8.2% 7.4% 7.4% 7.6% 7.1% 6.7% • India likely to grow fastest among major economies in next 2 years with average growth of about 7.5%, Gross Domestic Product FY15 FY16 FY17 FY18 FY19f FY20f Manufacturing Capacity Utilization (Average %) IIP Growth (%) 6% 5.2% 77.0% 4.6% 4.8%
Slide 9: Indian Domestic Carbon Steel Demand Scenario
Indian Domestic Carbon Steel Demand Scenario : Domestic Carbon Steel Market Size Continue to Expand Consumption Growth Consumption Growth Fig in Mt Category (FY’18) (y-o-y) April – Dec’ 18 (y-o-y) Bars & Rods 34.4 2.2% 27 7.8% Long Carbon Structurals 8.0 2.2% 6 4.5% Steel Rly. Materials 1.23 17.3% 0
Slide 10: Power Business
Power Business Energy Requirement vs Availability (in BUs) Sector-wise PLF (%) 2100 90 85 1900 80 75 1700 70 65 1500 1289 60 1195 55 1300 1069 1114 1143 1281 50 1100 937 996 1002 1091 1135 1187 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18- 831 862 1031 19* 900 858 909 960 700 747 788 Cen
Slide 11: IEX Clearing Price Trend
IEX Clearing Price Trend RTC Power Exchange Prices – W3 Region (Rs./kWh) 6.30 5.73 5.30 4.69 4.30 4.57 4.02 FY 15-16 FY 16-17 3.97 3.58 FY 17-18 3.68 3.68 3.68 3.30 3.41 FY 18-19 3.30 3.45 3.33 3.20 3.19 3.22 3.06 2.36 2.67 2.65 2.30 2.50 2.19 2.55 2.20 2.35 2.05 2.03 2.05 2.06 1.91 1.89 2.13 1.86 2
Slide 12: Brief Background
Q2 FY’19 INDUSTRY BRIEF BACKGROUND OPERATIONAL UPDATE PERFORMANCE 11
Slide 13: Business Segments
Business Segments Steel Power Global Ventures Current Capacities – Domestic & Global 8.6 MTPA Steel* 2.4 MTPA Steel IPP – 3400MW** 3.11 MTPA* Iron ore Coal & Iron Ore CPP – 1634 MW 9 MTPA* Pellet Plant Mines *Domestic 12 **1000 MW Divestment announced
Slide 14: Steel Capacities across Life Cycle
Steel Capacities across Life Cycle Iron Making Liquid Steel Finished Steel (9.95 MTPA) (11.00 MTPA) (7.95 MTPA) DRI 3.12 MTPAin deail WRM 0.60 MTPA Capacity RUBM 0.75 MTPA BF 5.33 MTPA SMS 11.00 MTPA MLSM 0.60 MTPA Plate Mill 2.20 MTPA HBI 1.50 MTPA BRM 3.80 MTPA 13
Slide 15: Detailed plant wise capacities
Detailed plant wise capacities Raigarh Angul Barbil Patratu Oman JPL Mining (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) CGP BF 2.125 225,000 MTPA HBI 1.5 Nm3/Hr MTPA DRI 1.32 BF 3.2 MTPA MTPA WRM Iron Ore SMS Capacity DRI 1.8in deail 0.60 3.11 3.6MTPA MTPA MTPA MTPA SMS 2.5 Pellet SMS 2.4 Plate Mil
Slide 16: Manifold Growth in the Last 5 Years
Manifold Growth in the Last 5 Years FY ‘14 FY ’18-19 Steel - India 3 MTPA 8.6 MTPA ~2.86x Power 1,000 MW 3400 MW 3.4x Oman 0 MTPA 2.4 MTPA Add Pellet 4.5 MTPA 9 MTPA ~2x All major capex completed – scale of growth is approx. Three Times 15
Slide 17: Potential for BIG LEAP
…… potential for BIG LEAP Upside FY18 Capacity Production in FY18 Potential Steel – India 8.6 MTPA 4.02 MTPA 114% Capacity Steel – Oman 2.0 MTPA(1) 1.67 MTPA 20% Capacity Independent 3,400 MW 1237 MW 174% Power Capacity Pellet 9.0 MTPA 6.86 MTPA 31% Capacity Upside potential remains to be exploited
Slide 18: JSPL Standalone Key Financials
JSPL Standalone Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q3 FY 2018-19 Q2 FY 2018-19 Q3 FY 2017-18 %QoQ %YoY Turnover 6,745 6,849 4,272 -2% 58% EBITDA 1,480 1,452 921 3% 61% EBITDA % 22% 21% 22% Depreciation + Amortization 572 583 465 -2% 23% Interest 635 676 594 -6% 7% PBT
Slide 19: JSPL - Power Capacities
JSPL - Power Capacities Independent Power Projects (IPP) Capacity Project Fuel Configuration Status (MW) Tamnar 1* 1,000 Coal 4x250 MW Operational Tamnar 2 2,400 Coal 4x600 MW Operational Captive power projects (within JSPL) Raigarh Tamnar Capacity Angul Project Fuel Configuration Status (MW) DCPP,
Slide 20: Jindal Power Limited
JINDAL POWER LIMITED 96.43% subsidiary of JSPL EUP -I EUP -II EUP -III 1000MW (4 X 250) 1200MW (2 X 600) 1200MW (2 X 600) 19
Slide 21: PPA Arrangements
PPA Arrangements Period Quantum Project Buyer Type From To (MW) Tamnar II Long Term Feb-14 Sep-28 400 (Phase 1) Tamil Nadu Tamnar I Medium Term Sep-17 Aug-19 200 Tamnar II Long Term Jun-16 May-41 200 (Phase 1) KSEB Tamnar II Long Term Oct-17 Sep-42 150 (Phase 1) Tamnar II Long Term After commercial
Slide 22: Key Contractual Arrangements for JPL
Key Contractual Arrangements for JPL Tamnar-I, 1,000 MW (EUP I) Tamnar-II - 1,200 MW (EUP II) Tamnar-II - 1,200 MW (EUP III) ▪ Long term linkage from ▪ Coal sourced through – market Mahanadi Coal Limited (MCL) ▪ Coal sourced through – market FSA purchase and e-auction and South Eastern Coalfields pu
Slide 23: JPL Key Financials
JPL Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q3 FY 2018-19 Q2 FY 2018-19 Q3 FY 2017-18 %QoQ %YoY Turnover 1,004 911 1,172 10% -14% EBITDA 273 302 356 -10% -23% EBITDA % 27% 33% 30% Depreciation + Amortization 334 333 381 0% -12% Interest 219 222 244 -1% -10% PBT (202) (183)
Slide 24: Summary of International Operations
Summary of International Operations Shadeed, Oman ◼ 1.5 MT HBI , 2 MT SMS Plant & 1.4MTPA Rebar Mill – an Integrated Steel Plant Mozambique, Africa ◼ Developing a 3 MTPA coal mine in Mozambique’s coal- rich Moatize region South Africa, Africa Australia ▪ JSPL’s Kiepersol Colliery produces Anthracite
Slide 25: Holding structure for global operations
Holding structure for global operations Jindal Steel & Power Ltd Listed Operating Entity in India Jindal Steel & Power (Mauritius) Ltd Holding company for overseas business Oman Australia South Africa Mozambique 2 MTPA Steel plant Coking Coal Anthracite Coal Thermal/ Coking Coal 24
Slide 26: JSPL Consolidated Key Financials
JSPL Consolidated Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q3 FY 2018-19 Q2 FY 2018-19 Q3 FY 2017-18 %QoQ %YoY Turnover 9,580 9,982 6,994 -4% 37% EBITDA 2,077 2,207 1,607 -6% 29% EBITDA % 22% 22% 23% Depreciation + Amortization 1,036 1,031 963 - 8% Interest 1,042 1,086 967
Slide 27: Operational Performance
Q2 FY’19 INDUSTRY BRIEF BACKGROUND OPERATIONAL UPDATE PERFORMANCE 26
Slide 28: Operational Performance
Operational Performance Consolidated Steel Production Consolidated Steel Sales 1.66 1.65 1.19 1.16 1.15 1.30 1.27 1.32 1.39 1.72 1.67 1.68 1.11 1.08 1.16 1.31 1.15 1.35 1.36 1.75 1.60 1.60 0.46 0.43 0.38 0.46 0.48 0.42 0.47 0.45 1.40 1.40 1.20 0.42 1.20 0.42 0.39 0.43 0.39 0.36 0.43 1.00 0.35 0.28 0
Slide 29: Key Customers & Adding
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Slide 30: Angul
ANGUL 29
Slide 31: Raigarh
Jinoa JINDAL 30
Slide 32: Oman
OMAN 31
Slide 33: For any information please contact
For any information please contact: - Mr. Nishant Baranwal – Head, Investor Relations Tel : +91 11-41462198 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com 32
Slide 34: Thank You
JINDALY THANK YOU
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